Opinion | Tech firms line up to ride the online video wave

Chinese tech companies are readying themselves to cash in on the rising demand for online video content, despite fierce competition in the sector, analysts say.

Leshi Internet Information and Technology, one of the largest emerging stars, has already gained an strong advantage in the sector, a Goldman Sachs report said last week.

The Beijing-based firm is poised to benefit especially from its development of hardware such as its SuperTV and SuperPhones, the company’s own branded high-tech versions of TVs and phones.

The company reports a growing user base, especially following its announcement on August 22 of a cooperation with China International Broadcasting Network, the internet TV platform, Goldman analysts Xufa Liao and Brian Dai have highlighted in the report.

Building on that expansion in hardware sales and the completion of a 4.8 billion yuan private placement, Goldmans says Leshi has strong levels of cash to fund further growth.

This year, it is expected to double its 2015 revenue of 13 billion yuan, to almost 24 billion.